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ASAP 340B Commends Sen. Cassidy’s Investigation into 340B Hospital Revenue


FOR IMMEDIATE RELEASE

September 29, 2023


Investigation by Ranking Member of the Senate Health, Education, Labor, and Pensions Committee into 340B Hospital Spending Underscores Need for Comprehensive Reform



Washington, D.C. (September 29, 2023)– The Alliance to Save America’s 340B Program (ASAP 340B) applauded Senator Bill Cassidy (R-LA) for initiating an investigation into how certain hospital systems spend savings generated from the 340B Drug Pricing Program. The Senate Health, Education, Labor, and Pensions Committee – of which Sen. Cassidy is the ranking member – has jurisdiction over the 340B program as well as matters related to public health.


The following statement can be attributed to Thomas Johnson, ASAP 340B Executive Director:


“Sen. Cassidy’s investigation asks the right fundamental question: how have hospitals’ 340B savings helped improve care and affordability for vulnerable Americans? ASAP 340B was formed because our partners believe that a comprehensive set of statutory changes – outlined in our policy principles – is necessary to create certainty, prevent misuse, and bring accountability and transparency to the program. We commend Sen. Cassidy for spearheading an investigation that seeks clarity around how 340B discounts are benefiting patients, addresses lax hospital eligibility guidance and acknowledges the disparate reporting requirements among the different types of 340B covered entities. Sen. Cassidy’s investigation comes at a pivotal time when Community Health Centers and other safety-net providers participating in the 340B program are counting on Congress to save the program so that our country’s underserved patients are not left behind.”


The 340B program was intended to help true safety-net providers increase access to affordable health care services and medications. However, some entities that participate in the program, have generated substantial profits without assurances the savings have been used to improve care and reduce costs for underserved patients. According to recently released figures from the Health Resources and Services Administration, the amount of discounted medicines purchased through the program grew to an astounding $54 billion per year with hospitals responsible for 87 percent of the total. Sen. Cassidy sent an inquiry to Bon Secours Mercy Health and Cleveland Clinic requesting responses and documentation as to how they generate 340B revenue and spend savings.


To read ASAP 340B’s 10 policy principles click here.



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About the Alliance to Save America’s 340B Program (ASAP 340B)

The Alliance to Save America’s 340B Program (ASAP 340B) is a partnership of Community Health Centers, patient, provider and consumer advocates, and leaders from the biopharmaceutical industry working to improve the 340B program. ASAP 340B is focused on advancing meaningful and achievable changes in support of our nation’s safety-net providers and underserved communities. To learn more, visit asap340B.org and follow us on Twitter @asap340B.



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